Swiss Franc Rally Appears Overdone, Consolidation Expected
According to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, the Swiss Franc has staged an overdone rally against the US Dollar. The pair USD/CHF reached a high of 0.8265 but is now expected to consolidate between 0.8225 and 0.8275 in the near term.
The momentum remains strong, but it may not be sufficient to break above 0.8300 over the next 1-3 weeks. The strategists also flagged 0.8185 as key downside support, indicating that a breach of this level would mean the upside momentum from late last week is easing.
In their previous narrative from Tuesday (15 Sep), the strategists highlighted that USD must break and hold above 0.8205 before a move to 0.8245 could be expected. Yesterday's sharp rally appears to have been overdone, and USD is unlikely to rise much further.